In considering Modigliani & Miller's (M&M) Propositions and it in a world with no taxes and no bankruptcy risk assume Firm A is an all- equity firm with a required return on its assets (R) of 10%. Firm B is a levered firm and can borrow in the debt market at 7% (RJ), IMEMS proposition II holds, what is the cost of equity and the WACC if Firm B is levered to 50% debt is this capital structure better for Firm B? Show your calculations. HTML Editor